aug.MBA - Introduction(2)ath

ManagerialAccountingandtheBusinessEnvironmentChapter1©TheMcGraw-HillCompanies,Inc.,2000Irwin/McGraw-HillManagerialAccountingandFinancialAccountingManagerialaccountingprovidesinformationformanagersofanorganizationwhodirectandcontrolitsoperations.Financialaccountingprovidesinformationtostockholders,creditorsandotherswhoareoutsidetheorganization.©TheMcGraw-HillCompanies,Inc.,2000Irwin/McGraw-HillWorkofManagementPlanningControllingDirectingandMotivating©TheMcGraw-HillCompanies,Inc.,2000Irwin/McGraw-HillPlanningandControlCycleDecisionMakingFormulatingLong-andShort-TermPlans(Planning)MeasuringPerformance(Controlling)ImplementingthePlans(DirectingandMotivating)ComparingActualtoPlannedPerformance(Controlling)Begin©TheMcGraw-HillCompanies,Inc.,2000Irwin/McGraw-HillDifferencesBetweenFinancialandManagerialAccountingFinancialManagerialAccountingAccounting1.UsersExternalpersonswhoManagerswhoplanformakefinancialdecisionsandcontrolanorganization2.TimefocusHistoricalperspectiveFutureemphasis3.VerifiabilityEmphasisonEmphasisonrelevanceversusrelevanceverifiabilityforplanningandcontrol4.PrecisionversusEmphasisonEmphasisontimelinessprecisiontimeliness5.SubjectPrimaryfocusisonFocusesonsegmentsthewholeorganizationofanorganization6.RequirementsMustfollowGAAPNeednotfollowGAAPandprescribedformatsoranyprescribedformat©TheMcGraw-HillCompanies,Inc.,2000Irwin/McGraw-HillExpandingRoleofManagerialAccountingIncreasingcomplexityandsizeoforganizationsRapiddevelopmentandimplementationoftechnologyRegulatoryenvironmentWorld-widecompetitionIncreasedemphasisonqualityFactorsthatincreasetheneedformanagerialaccountinginformation©TheMcGraw-HillCompanies,Inc.,2000Irwin/McGraw-HillTheChangingBusinessEnvironmentAmorecompetitiveenvironmentemphasizing:HigherqualityproductsLowerpricesandcostsGlobalcompetitionMeetingandanticipatingcustomerneedsBusinessenvironmentchangesinthepasttwentyyears©TheMcGraw-HillCompanies,Inc.,2000Irwin/McGraw-HillTheChangingBusinessEnvironmentJust-In-TimeTotalQualityManagementProcessReengineeringTheoryofConstraintsNewtoolsformanagers!©TheMcGraw-HillCompanies,Inc.,2000Irwin/McGraw-HillCompleteproductsjustintimetoshipcustomers.Completepartsjustintimeforassemblyintoproducts.Receivematerialsjustintimeforproduction.Scheduleproduction.Just-in-Time(JIT)SystemsReceivecustomerorders.©TheMcGraw-HillCompanies,Inc.,2000Irwin/McGraw-HillFlexibleworkforceReducedsetuptimeZeroproductiondefectsKeyElementsforaSuccessfulJITSystemImprovedplantlayoutJITpurchasingFewer,butmoreultrareliablesuppliers.FrequentJITdeliveriesinsmalllots.Defect-freesupplierdeliveries.©TheMcGraw-HillCompanies,Inc.,2000Irwin/McGraw-HillMorerapidresponsetocustomerordersLesswarehousespaceneededReducedinventorycostsGreatercustomersatisfactionHigherqualityproductsBenefitsofaJITSystem©TheMcGraw-HillCompanies,Inc.,2000Irwin/McGraw-HillDoweneedtochangetheplan?Wherearewe?Wheredowewanttogo?Howdowestart?Howarewedoing?CheckPlanActDoisTotalQualityManagementBenchmarkingContinuousImprovement©TheMcGraw-HillCompanies,Inc.,2000Irwin/McGraw-HillProcessReengineeringTheprocessisredesignedtoincludeonlythosestepsthatmakeourproductmorevaluable.Everystepinthebusinessprocessmustbejustified.Abusinessprocessisdiagrammedindetail.©TheMcGraw-HillCompanies,Inc.,2000Irwin/McGraw-HillProcessReengineeringAnticipatedresults:Processissimplified.Processiscompletedinlesstime.Costsarereduced.Opportunitiesforerrorsarereduced.Theprocessisredesignedtoincludeonlythosestepsthatmakeourproductmorevaluable.Everystepinthebusinessprocessmustbejustified.Abusinessprocessisdiagrammedindetail.©TheMcGraw-HillCompanies,Inc.,2000Irwin/McGraw-HillTheoryofConstraintsAsequentialprocessofidentifyingandremovingconstraintsinasystem.Restrictionsorbarriersthatimpedeprogresstowardanobjective©TheMcGraw-HillCompanies,Inc.,2000Irwin/McGraw-HillInternationalCompetitionMeetingworld-classcompetitiondemandsaworld-classmanagementaccountingsystem.Managersmustmakedecisionstoplan,direct,andcontrolaworld-classorganization.©TheMcGraw-HillCompanies,Inc.,2000Irwin/McGraw-HillCorporateOrganizationChartPurchasingPersonnelVicePresidentOperationsTreasurerControllerChiefFinancialOfficerPresidentBoardofDirectorsOrganizationalStructureAnorganizationisagroupofpeopleunitedforacommonpurpose.©TheMcGraw-HillCompanies,Inc.,2000Irwin/McGraw-HillDecentralizationDecentralizationisthedelegationofdecision-makingauthoritythroughoutanorganization.CorporateOrganizationChartPurchasingPersonnelVicePresidentOperationsTreasurerControllerChiefFinancialOfficerPresidentBoardofDirectors©TheMcGraw-HillCompanies,Inc.,2000Irwin/McGraw-HillLineandStaffRelationshipsLinepositionsaredirectlyrelatedtoachievementofthebasicobjectivesofanorganization.Example:Productionsupervisorsinamanufacturingplant.Staffpositionssupportandassistlinepositions.Example:Costaccountantsinthemanufacturingplant.©TheMcGraw-HillCompanies,Inc.,2000Irwin/McGraw-HillTheControllerThechiefaccountantinanorganizationwithresponsibilityfor:Financialplanningandanalysis.Costcontrol.Financialreporting.Accountin